My comment was just that you're probably exposing yourself to $14k in taxable income you didn't have to before.I too own rental property in SD, and the tax implications of increasing cash flow is, for me, one of the contributing reasons why I chose to maintain a majority of the portfolio in SD.Sounds like you're planning to ladder up again in a couple years, though.  

As Dion mentioned, most mortgage docs contain clauses related to maintaining the property and protecting the lender's interest.The first thing I would do is read the documents and see what was included.

I have been doing all this for ten years: turning around and maintaining my units, screening and selecting tenants, moving them in and helping them move out.I've have had between two and eight units and have six currently.

The other units have a furnace that is 15 years old ballpark, the other one is a gas water pump that is old but was just maintained. by a licensed hvac company.

Not all acts will be protected and you must properly maintain the entity and business operations.The biggest considerations, to me, are financing and taxes.

I was thinking that if I levereaged the equity on my house to buy other rental properties and maintaining a buy low rehab and rent with a small cash flow.

What they found out about doctors and lawyers was they felt they had to maintain the appearance of a certain level of weatlh which meant living in expensive houses and drivign expensive cars.  

Why would any build new rental units in a market where they would be subject to rent control.All rent control does is reduce supply so that people become unable to move to newer, better, units because they are priced out of those units or they never got built, and landlords have less incentive to maintain their property because there is no supply to compete with. 

I no longer live on island but still maintain my business there and do multiple flips per year.

We've been in the home for 2 years, maintaining it and paying rent on time.